5 Tips To Know For Renting A Salon Suite
As you may have noticed, the trend for beauty professionals is steering away from the traditional commission and hourly based pay methods to salon suite rentals. Stylists and spa therapists are quickly realizing they could have more freedom and make more money running their own business in a one or two person studio instead of working for someone else. “Be a boss” is becoming more than just a catch a phrase as more and more individuals jump on board.
What does it really take to successfully run your own beauty business and see your dreams become reality? Here are some tips to follow as you begin your journey into business owner bliss.
Your core client list is your bread and butter, so this must be securely in place for everything else to run smoothly. They pay your bills and then some, am I right? Ideally, that group would keep you booked about 80% of your available working hours or more. When moving from salon employee to suite owner, the transition can be tricky. Build relationships with your clients by finding common ground so that exchanging phone numbers is a natural thing. Also, become friends with them on social media. This will ensure that if you have to make a quick exit or don’t have access to their information through the salon, you are able to communicate with them just before or after you have moved. Their appointments stay booked – same time, new place. Generally speaking, about 15% won’t follow you but most of your clients will be thrilled to support you in your new business endeavors. You may even see your referrals improve!
And of course, at You Are Worthy Beauty Studio, you have a concierge to help you build your clientele – with walk-ins, marketing strategies, social media – above and beyond what you previously had!
What to Charge
Rule of thumb is to avoid lowering your prices. You don’t want to sell yourself short out of fear that they won’t follow you. Express excitement about your new endeavors and expect loyalty. If you feel you need to increase your prices, do so minimally the first year of starting your own business. It’s best not to scare away faithful clients with a large increase on top of them driving to a different location and getting into a new routine.
Starting your own business is a big deal. Get excited, but don’t forget to do the math and make sure you have all of your ducks in a row. Preparation is key! Here are what your startup and weekly/monthly costs will entail.
State board and business licensing
Extra furniture and personal decor items
Design and/or printing for business cards, menus and websites (include hosting)
Back bar and retail
Tools – scissors, blow dryer, etc.
Renters/ liability insurance
Credit card fees
Money set aside for taxes
Once you’ve made sure you have enough in savings for the start-up costs, which can be anywhere from $500. – $3,000, it’s time to nail down whether or not you’re in a good position to handle the monthly costs.This means looking at what your monthly expenses will be versus how much money you’ll be bringing in. You need to have a firm grasp on what your average monthly gross income is based on your core client list. So, assuming you have what you need for start-up costs, let’s take a look at what a monthly scenario might be.
How do I pay myself?
After doing the math and feeling confident to move forward with leasing a suite, the next step is to find an accountant you trust. An accountant will help you know what deductions you can claim on your taxes, how to file for quarterly instead of yearly payments, and help you stay on top of making those payments. They may even recommend filing to become an LLC and discuss the benefits of that with you, as well as opening a separate business bank account.
Define your brand
Last but certainly not least, it’s time to define your brand. Who are you? What is your aesthetic? What do clients think of when they think of you – or what do you want them to think of? Whatever you decide, the key is to make it very clear and stay consistent through all marketing platforms. From business cards to social media to the décor on your walls, it all tells a story, your story. Get creative and have fun with it!
Once your suite owner journey begins, don’t forget to utilize your Salon to help grow and support your business with marketing ideas and social media posts.
About You Are Worthy Beauty Studio, Raymond and Esmeralda Garcia began their journey when Esmeralda started her career in the beauty industry as a microblading artist in 2017. Like most young entrepreneurs, they started out with a big idea but had to learn how to start and run a business from scratch. After much perseverance and hard work, one year later, they opened You Are Worthy Beauty Studio,AZ , welcoming beauty and wellness specialists as independent contractors. For more information, visit youareworthybeautystudio.com